2019 Berkshire Hathaway Annual Meeting

[IceCreamMan]

I think you need some assumptions about volatility and how often you rebalance (re-lever). For example, assume that the S&P has the following return sequence over the next 4 years and you re-lever once a year: +24%, -55%, +75%, +33%. The S&P avg annualized return would be +6.75% but a 1.5x S&P strategy would do -6.75% annualized.